 | Fiscal NoteH.B. 389 2025 General Session Child Care Business Tax Credit by Thompson, Jason E. |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(4,452,700) | $4,251,200 | $(201,500) |
| Revenues | FY2025 | FY2026 | FY2027 |
| Income Tax Fund | $0 | $(4,400,000) | $(4,400,000) |
| Income Tax Fund, One-time | $0 | $4,400,000 | $0 |
| Total Revenues | $0 | $0 | $(4,400,000) |
Enactment of this legislation would provide a nonrefundable corporate and individual income tax credit for employer-provided child care which could reduce Income Tax Fund revenues by an estimated $4.4 million beginning in FY 2027.
| Expenditures | FY2025 | FY2026 | FY2027 |
| General Fund | $0 | $52,700 | $52,700 |
| General Fund, One-time | $0 | $141,000 | $0 |
| Income Tax Fund, One-time | $0 | $7,800 | $0 |
| Total Expenditures | $0 | $201,500 | $52,700 |
Enactment of this legislation could cost the Tax Commission $7,800 one-time from the Income Tax Fund in FY 2026 for system updates. Enactment of this legislation could also cost the Department of Workforce Services $52,700 ongoing from the General Fund and $141,000 one-time to establish and administer a certificate process. The department indicates that $17,500 of ongoing administration costs can be absorbed.
| FY2025 | FY2026 | FY2027 | |
| Net All Funds (rev-exp) | $0 | $(201,500) | $(4,452,700) |
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
Enactment of this legislation could decrease income tax liability for employers that have qualifying expenditure by $4.4 million in the aggregate beginning in tax year 2026.
Enactment of this legislation likely will not change the regulatory burden for Utah residents or businesses.
This bill does not create a new program or significantly expand an existing program.